(vasep.com.vn) In the first quarter of 2012, Saota Foods Joint Stock Company (Fimex VN) reported drop in post-tax profit compared to the same period of 2011, according to Ho Quoc Luc, General Director of Fimex VN.
Shrimp farms are not in full harvest in the first half of the year. Therefore, at the previous year’s end, local shrimp processors purchased and stored raw material for processing. However, they found tough competition to buy shrimp in the last two quarters of 2011 as result of lower prices in international markets and shortage of shrimp supply.
In addition, in first quarter of 2012, shrimp farms in Mekong Delta got huge damages due to spreading shrimp diseases while Thailand and Mexico reported high production of farmed shrimp and marine shrimp and Indian semi-processed farmed shrimp in store remained at high level. In this situation, Fimex VN was pushed to reduce export prices of its semi-processed farmed shrimp to meet global market trend.
Moreover, the USD/VND exchange rate also has negative impact on enterprises in sales, particularly the case of foreign currency buyers, including Fimex VN.
The current inflation caused hike of input costs as follows: high labour cost; bank loans rate up 16 percent in quarter I/2012 compared to 14.5 percent in quarter I/2011; others increasing costs like nylon bags, drugs and chemicals…
At the 2011 Annual General Meeting of Shareholders, Fimex VN approved business targets in 2012. It plans to reach VND2,000 billion of sales, at least VND30 billion of profit before tax. The 2012 dividend yield is set at 18 percent and be paid by cash. In 2011, shareholders receive a dividend yield of 25 percent.
Website: www.fimexvn.com